You might assume it’s best to avoid credit cards that charge an annual fee. After all, why should you have to pay money to a credit card issuer to keep its product in your wallet? However, credit cards with annual fees often come with pretty sweet perks that no annual fee cards can only dream of.

Let’s take a closer look at two of my favorite cards that coincidentally charge annual fees, and see why those fees are worth it.

Cool travel perks: Chase Sapphire Preferred

First up is the Chase Sapphire Preferred® Card. This was my first-ever travel credit card with an annual fee, and right from the jump, paying the fee has been worth it. Travel cards with annual fees include more perks than their free counterparts, and depending on what you’re paying for the card, you could receive free airport lounge access and valuable travel protections, like rental car insurance.

This Chase card has an impressive sign-up bonus — new cardholders can earn $300 Chase Travel℠ Credit + 60,000 bonus points by spending $4,000 in the first 3 months with the card. Those points are worth up to $1,050 in Chase Travel℠ value if you use them to book travel through Chase (its Sapphire cards add value to Chase Ultimate Rewards points — 25% more with the Chase Sapphire Preferred® Card and 50% more with the more costly Chase Sapphire Reserve®).

The annual fee for this card is a reasonable $95, and its bonus categories have proven to be extremely useful. The 3X points per $1 on dining, select streaming services, and online groceries is especially notable — plus the card came with a free DashPass subscription, so it has become my go-to for restaurant meals of all kinds. Plus, I earn 2X points per $1 on travel not booked through Chase, so I’m earning extra points whenever I book an Airbnb stay.

The Chase Sapphire Preferred® Card is also an international travel superstar. I used it to pay for an entire trip to northern England (flights, a hotel stay, museum admissions, meals out) this past spring, and enjoyed that it has no foreign transaction fee. And it’s a Visa, so it’s accepted all over the world.

Beaucoup cash back: Amex Blue Cash Preferred

Maybe a gas and groceries credit card is more your speed. I can respect that — as a remote freelancer who usually works from home, I don’t spend a ton of money on gas these days. But groceries make up the biggest spending category in my budget after my mortgage and health insurance, so when I heard about the Blue Cash Preferred® Card from American Express, I knew I had to apply.

This Amex card has the highest rate of cash back on groceries I’ve ever seen. You can earn 6% cash back on up to $6,000 per year of spending at U.S. supermarkets. And if you spend a lot on gas, you can get 3% back on it. More a fan of public transportation instead? That 3% is also what you’ll earn on transit costs, like tolls, taxis, ride-hailing, and parking. Terms apply.

The annual fee on this card is quite reasonable too. The Amex Blue Cash Preferred has a $0 intro annual fee for the first year, then $95. (See rates and fees.) So you won’t even have to pay for it until the second year, and by then, you’ll surely be a fan of this card — especially if you’re a foodie. So far in 2024, I’ve earned almost $350 back with this card!

Don’t assume that credit cards with annual fees aren’t worth it. I use these two weekly to pay for some of my biggest expenses, and I’m generously rewarded with higher rates on those big expenses. That makes paying their annual fees 100% worth it for me.